Brisbane Property Market Update – October 2016 

Objective data is important to consider when buying an investment property in Brisbane. As Buyer’s Agents we are commonly asked: “How is the Brisbane property market performing?” The following statistics provide some insight into the capital growth and rental return of Brisbane properties.

 

Brisbane’s Capital Growth

The CoreLogic RP Data Home Value Index uses the latest property sales information to track changes in the residential property market. The graph below traces the past 12 months of index values for each of the major capital cities.  The red line indicates changes in the property price index for Brisbane.

brisbanecapitalgrowth

Over the last 12 months property prices (all dwellings) in Brisbane have increased by 3.03%. Houses (up 3.29%) have performed better than units (down 0.45%).

Over the last month (to September 30) property prices (all dwellings) in Brisbane have decreased by 0.01%.   This month, units (up 0.89%) outperformed houses (down 0.01%).

 

Brisbane’s Rental Market

Rental Vacancy Rates

Rental vacancy rates are an important indicator of the supply and demand for property.  A balanced rental market has a vacancy rate of around 3%.

Brisbane’s rental vacancy rate has increased from 2.7% to 2.9% during the month of September. Over the last 12 months, Brisbane’s vacancy rate has increased from 2.6%.

rentalvacancyrates rentalvacancyrates2

Rental Returns

On average, houses in Brisbane are currently renting for $440/week, and units at $371/wk. Compared to 1 year ago, rents for houses are down 0.9% and rents for units are down 0.8%. Rental yields in Brisbane remain strong at 4.3%. (source: Core Logic (Monthly Housing and Economic Chart Pack)

brisbanerentalreturns

In Brisbane, units tend to achieve the highest rental return for investors.  When looking at houses, those with 3 bedrooms provide the best yields. (see graph below courtesy of SQM Research)

brisbanerentalyield

If you are interested in purchasing a home or investment property in Brisbane then perhaps consider using the services of a Buyer’s Agent.   Your Property Hound is a local Buyer’s Agent which focuses on the Brisbane market and can assist with all stages of the purchase process. Feel free to contact us, or check out our website for more information.